In a confidence boost in the commercial district of Leongatha, two large buildings were sold at auction last Wednesday 28 February.
The buildings housing Henrietta’s and the National Australia Bank (NAB) successfully sold at a Crown Casino auction and coordinated by agents Alex Scott and Staff Leongatha and Burgess Rawson Melbourne.
The NAB building sold for $1.385 million on a 7.1% yield and Henrietta’s building sold for $666,000.
“Both buyers are very happy with their purchases and are happy to invest large sums of money in Leongatha,” Alex Scott and Staff branch manager Andrew Newton said.
“This gives Leongatha investors confidence and it’s particularly good for commercial property with solid tenants and long term leases.”
Mr Newton said he is hopeful these sales will encourage the community to fill up the empty shops around Leongatha.
“Particularly for NAB there were 14 bidders from Sydney and Melbourne and from local areas,” he said.
“The auction was heavily contested.”
Burgess Rawson expected the sale price to be around $550,000 for Henrietta’s however the final sale price substantially exceeded that expectation.
Local vendors are believed to be delighted with the sale price and that it shows strength in the local economy.
the final sale price for NAB was also higher than the expected $1.2-$1.25 million.
Raoul Holderhead from Burgess Rawson said there were bidders for both properties bidding from Alex Scott and Staff offices, at Crown and on the phones in Sydney and Latrobe Valley.
“The buyer for the NAB was from a mum and dad investor from Anglesea while the Henrietta’s building went to a buyer from Cranbourne. A local person was the unsuccessful underbidder.” Mr Holderhead said.
“The commercial scene around Leongatha is still looking pretty solid.”
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